People desire convenience and speed when conducting financial transactions but are also concerned about the security of the transactions. Many people conduct transactions at a variety of merchants, such as coffee shops and grocery stores, and would like both convenience and control over their transaction security. Currently, people use debit cards, credit cards, checks, or cash when paying for goods and services. These current forms of payment can be inconvenient to use and lack effective customizable security measures.
When using a debit card or credit card to conduct a financial transaction, the user is often required to enter a personal identification number (PIN) into a point-of-sale (POS) terminal, provide a signature, and/or show a separate form of picture identification (ID). Checks also require separate identification and must be written out, taking up valuable time. Paying for transactions with cash requires that the person carry the cash with them, wait while change is counted out, and risk losing the cash.
There are also efforts to create a “mobile wallet” system where people use their mobile phones or similar mobile devices to engage in financial transactions. In such systems, a person's mobile phone communicates payment information to the POS terminal and the POS terminal then uses this payment information to approve the transaction. These mobile wallet systems also often require the user to take one or more steps to authenticate the user's identity, such as the steps of having to enter a PIN, show a picture ID, provide a signature, etc.
All of these inconveniences can add up to wasted time, effort, and worry for people as they conduct transactions. Furthermore, while some people may think that the security procedures required to use a certain payment device are too onerous and inconvenient, other people may think that the required security procedures are not tough enough for the user to overcome.
Thus, there is a need for improved systems and methods for managing mobile transaction device security in a way that is both convenient and effective for the interested parties.